Cramer: Apple should buy Yelp for $75 per share

CNBC's Jim Cramer said the consumer reviews company offers the complete package for a tech company looking for acquisitions, making it a perfect target for Apple.

After Yelp posted a better-than-expected second quarter earnings report, CNBC's Jim Cramer said the consumer reviews company offers the complete package in the tech world—and would be the perfect acquisition target for Apple.

"[Yelp] should be higher. It's going to go to $50-53, maybe $55," Cramer said on "Squawk on the Street" before the stock opened for trading Thursday.

Cramer listed Facebook, Schlumberger, Starbucks and Yelp as companies having outstanding earnings this year, and that should encourage the market that the current earnings season is a strong one.

"Don't underrate Yelp, because they have a model that works better on mobile than it does on desktop," he said. "This is the portable Yellow Pages. These guys do it on the Web. It is social, it is mobile. It is cloud. It is the holy grail trinity of tech."

"It's an outstanding quarter," Cramer said after the company posted a smaller-than-expected quarterly loss, helped by a stronger mobile advertising business.

After the loss beat Street expectations, Cramer predicted that the company "will never be profitable because Apple will buy them at $75."

An acquisition of Yelp at $75 would value the company at $4.83 billion, nearly a 50 percent increase from current trading levels. This compares with Apple's current cash holdings of over $146 billion.

Yelp touted its mobile app for making it easier for people to discover local businesses, read user reviews or rate them. The feature combines Yelp's reviews and other relevant information with knowledge of a user's location.

Yelp said about 40 percent of its local ads were viewed on mobile devices, and 59 percent of searches were from mobile, including the mobile app and the Web.

Shares have more than doubled since the company went public in March 2012.

"Apple, Mr. Cook, here it is. [With Yelp] you get social, you get mobile, you already have cloud. This is going to be the direct competitor against Facebook, against Google. It will be a blocking action," Cramer said. "I'd put this deal together right here."